Bitcoin Price Fluctuates Amid Fed Speculation and Market Reactions

Bitcoin fell below $88,000 as traders reacted to the upcoming Federal Open Market Committee meeting, with a focus on potential interest-rate changes. The price dipped close to $87,000, losing $2,000 over two hourly candles, signaling increased volatility.

Analysts noted that bulls need to maintain support at $86,000 to avoid further declines. The Federal Reserve is widely expected to announce a 0.25% rate cut, which could lead to significant market reactions.

Historically, Bitcoin tends to experience downward pressure ahead of FOMC announcements, as traders assess potential policy shifts. Michael van de Poppe, a crypto trader and analyst, indicated that the $86,000 level is critical for bullish sentiment, predicting a potential bounce back toward $92,000 in the following weeks if the Fed reduces quantitative tightening and cuts rates.

As the market prepares for the Fed's decision, liquidity and risk appetite are likely to be influenced by the outcomes of this meeting.